Prepare fuller company entry to record the exchange

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Question - Fuller Company exchanged machinery with a recorded cost of $7,000,000 and accumulated depreciation of $2,340,000 with Riley Corporation for machinery Riley owns. The machinery Riley gave to Fuller in exchange had a fair value of $5,820,000 and was recorded on Riley's books at an original cost of $9,520,000, and accumulated depreciation of $4,478,000. Fuller also gave Riley $470,000 in the exchange. Assume depreciation has already been updated through the date of exchange.

Required - Prepare Fuller Company's entry to record the exchange assuming that the exchange had commercial substance.

Reference no: EM133123978

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